INTRODUCTION ON EXPORT PROCEDURES UNDER CENTRAL EXCISE :

An exporter is not required to excise duty on input material if he executes a BOND to the effect that the input material so procured by him will be used to produce finished goods that would be exported. Hence, the supplier of input material to this exporter can remove goods without payment of ED.( Notification 42/2001 ).

Alternatively, the exporter can decide not to execute bond and instead claim rebate such as duty drawback, cash assistance etc.

An exporter who opts for executing bond will, however, not be eligible to claim rebate i.e. incentives like duty drawback to the extent of ED exempted.

Note – Goods exported to Nepal and  Bhutan are not eligible for rebate unless the sale proceeds are in foreign currency.

A manufacturer in Domestic Tariff Area (D.T.A )  CAN EXPORT GOODS IN THE FOLLOWING FOUR ROUTES-

• Goods sold to a foreign company ( The exporter is called manufacturer cum exporter )
• Goods sold to a company of SEZ
• Goods sold to a 100% EOU
• Goods sold to a merchant exporter ( The manufacturer is called deemed exporter )